FEMA UPDATE
> Temporary relaxation in time period of realisation of Export Proceeds-
– The Government of India as well as the Reserve Bank has been receiving representations from Exporters Trade bodies to extend the period of realisation of export proceeds in view of the outbreak of pandemic COVID- 19.
– It has, therefore, been decided, to increase the present period of realization and repatriation of export proceeds, from nine months to fifteen months from the date of export, for the exports made up to or on July 31, 2020.
– The provisions in regard to the period of realization and repatriation to India of the full export value of goods exported to warehouses established outside India remain unchanged.
Source:
A. P. (DIR SERIES 2019-20) Circular No. 27, April 01, 2020
> Normal Provisions for the Period within which export value of goods/software/services to be realized: –
(1) The amount representing the full export value of goods/software/services exported shall be realised and repatriated to India within nine months from the date of export, provided
a. that where the goods are exported to a warehouse established outside India with the permission of the Reserve Bank, the amount shall be paid to the authorised dealer as soon as it is realised and in any case within fifteen months from the date of shipment of goods;
b. the authorised dealer may, for a sufficient and reasonable cause shown, extend the period of nine months or fifteen months, as the case may be.
(2) Where the export of goods/software/services has been made by : –
Units in Special Economic Zones (SEZ)/Status Holder exporter/Export Oriented Units (EOUs) and units in Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs) as defined in the Foreign Trade Policy in force, then, the amount shall be realised and repatriated to India within nine months from the date of export.
Source:
Foreign Exchange Management (Export of Goods and Services) Regulations
*****
Disclaimer: This document does not contain any expert view or opinion. Please refer source documents for detailed information. We request readers to seek professional advice before arriving at any decision / conclusion after reading of this document. We are not responsible for any loss arising to anyone after referring and relying on this document.
Author Bio
we exported a material to Bangladesh through MAHADIPUR Land port, MALDA , W.B . But After export from India and before custom clearing from Bangladesh the material had burn with fire and lost the all goods. Therefore importer and consignee bank not able to made the payment. Now I want to know , what is the action and documentation from our side by law to RBI , Income Tax and GST also. Please guide us.
Read more at: https://taxguru.in/rbi/time-period-realisation-export-proceeds-fema.html
Copyright © Taxguru.in
Dear Chandra Sarkar ji,
Please make application for write off. Para C.23 of RBI FED Master Direction No. 16/2015-16 dated 1-1-2016 makes provisions in respect of writeoff of unrealized export bill.
Reporting in case of self write-off –
In case of self-write-off, the exporter should submit to the concerned AD bank, a Chartered Accountant’s certificate, indicating the export realization in the preceding calendar year and also the amount of write-off already availed of during the year, if any, the relevant EDF to be written off, Bill No., invoice value, commodity exported, country of export. The CA certificate may also indicate that the export benefits, if any, availed of by the exporter have been surrendered.
Following are some decisions to save penalty:
Exporter will not be liable and no penalty can be imposed on him if he took all reasonable steps to effect recovery of money. Allana Sons (P.) Ltd. v. FERAB – (1994) 80 Comp. Cas. 274 (Bom. HC DB) = (1993) 3 Bom. CR 17 (Bom. HC DB). Same view in House of Handicrafts v. Director of Enforcement – (1995) 79 Taxman 96 (FERAB) * Interads v. Director of Enforcement – (1995) 79 Taxman 123 (FERAB). * United Commercial Corpn v. Director of Enforcement – (1995) 83 Taxman 180 (Mag) (FERAB). * Sriji International v. Director of Enforcement – (1996) 84 Taxman 213 (Mag) (FERAB). If RBI has granted extension of time for receipt of goods, any action by enforcement authorities before that date is premature – Juthika Exports v. Director of Enforcement (1999) 106 Taxman 504 (FERAB).
Pl send notifications
https://taxguru.in/rbi/export-goods-services-realisation-repatriation-export-proceeds-relaxation.html